Equity markets climbed in Europe yesterday
Ichimoku Kinko Hyo CNH/JPY: The CNH/JPY pair is trading above the Kumo…
US equities rebounded in the previous session
Information is not investment advice
Ichimoku Kinko Hyo
GBP/JPY: The GBP/JPY pair is now trading within the Kumo. Further bearish sentiment will push prices below the cloud, targeting fresh lows. Alternatively, an upward wave would lead the exchange rate to test the upper level of the Kumo. If the pair manages to withstand the sellers’ pressure, it will exit the cloud. The next resistance is seen at the previous peak.
Market View
The International Monetary Fund (IMF) adjusted its expectations to global growth this year to 3.6% from 4.5% in January as the war in Ukraine has changed the outlook on the global economy. Particularly the growth outlook in Europe has been hit hard and the Ukrainian economy is expected to shrink by almost 35% this year. Geographic regions expected to grow faster than in January are Latin America and countries in the Middle East.
US equities rebounded on Tuesday but Europe a touch lower after the long holiday. Commodities pulled back and yields moved even higher. Intuitively, this triggered a rotation into value cyclicals in Europe. However, in the US: Real estate, communication services and tech were beating the tape, despite the US 10y yield approaching 3%.
In the FX space, EURUSD moved briefly above 1.08 on Tuesday but ended the day lower. Lower oil prices pushed the cross higher but rising US yields dominated which is a USD positive. Higher US yields also pushed USDJPY closer to 129. USDJPY moved all the way to 129.40 however currently is trading at around 128.50.
Similar
Brutal session in the equity markets yesterday
Ichimoku Kinko Hyo EUR/JPY: The EUR/JPY pair is now trading within the Kumo…
The U.S. economy added 390,000 jobs in May
Ichimoku Kinko Hyo USD/JPY: The USD/JPY pair is now trading above the Kumo…
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